Suppose you structured a bond deal for Kanye West that paid him $20 million upfront, with future royalties and streaming revenues from his past albums going towards payments to bondholders. Each bond had a face value of $1,000 and a coupon rate of 7.7% with semi-annual coupons. If the bonds have 9 years remaining until maturity and the current yield to maturity is 9.7%, what price is each bond trading at right now? Round to the nearest cent.

Answer rating: 100% (QA)

To calculate the price of each bond we can use the present value formula for a bo... View the full answer